Bankings

Best Business Bank Accounts UK 2026 — Free & Fee Accounts Compared

Compare the best UK business bank accounts for 2026. Free accounts, premium options, sole trader and limited company accounts reviewed.

· 4 min read

A good business bank account keeps your finances organised, makes tax easier, and can save you money on fees. Here’s how the best UK business accounts compare in 2026.

Do You Need a Business Bank Account?

Business Type Legally Required? Recommended?
Sole trader No Yes — easier bookkeeping
Partnership No Yes — separates business funds
Limited company Yes Required by law
LLP Yes Required by law

Even when not legally required, mixing personal and business finances creates headaches at tax time.

Best Business Bank Accounts at a Glance

Bank Monthly Fee Free Transfers Best For
Starling £0 Unlimited Freelancers, sole traders
Mettle £0 Unlimited NatWest backing, invoicing
Tide £0–£49.99 20 free/month Expense management
Monzo Business £0–£25 Varies Personal Monzo users
Revolut Business £0–£79 Varies Multi-currency
HSBC Kinetic £0 (18 months) Varies High street access
Lloyds £0 (12 months) 50/month Traditional banking
Barclays £0 (12 months) Varies In-branch support

Best Free Business Bank Accounts

Starling Bank Business

Feature Details
Monthly fee £0
UK payments Unlimited free
Cash deposits £3 fee at Post Office
Accounting integration Xero, QuickBooks, FreeAgent
Multi-user access Available on paid plan

Pros: Genuinely free, excellent app, quick setup Cons: No high street branches, cash deposits cost £3

Mettle by NatWest

Feature Details
Monthly fee £0
UK payments Unlimited free
Cash deposits Not available
Invoicing Built-in free tool
Backing Part of NatWest Group

Pros: Completely free, NatWest backing, good invoicing Cons: No cash deposits, limited features vs competitors

Tide (Free Plan)

Feature Details
Monthly fee £0
UK transfers 20 free/month
Additional transfers £0.20 each
Expense categorisation Automatic
Integrations Major accounting software

Pros: Good expense tracking, multiple card options Cons: Only 20 free transfers, paid features add up

Best Premium Business Accounts

Premium accounts suit businesses with higher transaction volumes or needing extra features.

Tide Plus (£9.99/month)

Feature Free Plan Plus Plan
Free transfers 20/month 150/month
Team cards 1 2
Cashback None 0.5% on spending
Support Standard Priority

Monzo Business Pro (£25/month)

Feature Lite (Free) Pro (£25)
UK transfers Limited Unlimited
Multi-user access No Yes
Invoicing No Yes
Tax pots Yes Yes

Revolut Business (£25/month)

Feature Free Grow (£25)
Local transfers 5/month 100/month
Team members 1 10
Multi-currency 25+ currencies 25+ currencies
Cards 1 10

Best for businesses sending/receiving international payments.

High Street Banks

Traditional banks charge more but offer branch access and relationship managers.

HSBC Kinetic

Feature Details
Monthly fee £0 for 18 months, then £8-£12
Introductory offer Fee-free banking period
Branch access Yes
Overdraft Available

Lloyds Bank Business

Feature Details
Monthly fee £0 for 12 months, then £8
Free transactions 50/month in intro period
Branch access Yes
Business support Dedicated managers

Barclays Business

Feature Details
Monthly fee £0 for 12 months, then varies
Cashback Up to £50 for switching
Branch access Yes
Payment terminals Available

What to Consider When Choosing

Transaction Fees

Bank Type Typical Fees
Digital banks (free tier) £0–£0.20 per transfer
Digital banks (premium) Usually free up to limit
High street (after intro) £0.35–£0.65 per transaction
Cash deposits £0.70–£1.00 per £100

Features Checklist

Feature Important For
Accounting integration Bookkeeping efficiency
Multi-user access Businesses with employees
Invoicing Freelancers, service providers
Multi-currency International trade
Overdraft/credit Cash flow management
Cash deposits Cash-heavy businesses

Best Business Account by Business Type

Business Type Recommended Account Why
Freelancer Starling or Mettle Free, simple, good apps
Sole trader (low volume) Tide Free or Starling No monthly fees
Sole trader (high volume) Tide Plus or Monzo Pro More free transactions
Limited company (small) Starling or Monzo Free accounting integration
Limited company (growing) Tide Plus or Revolut Team features, scaling
International business Revolut Business Multi-currency, low FX fees
Cash-based business Lloyds or HSBC Branch deposits

How to Open a Business Bank Account

What You’ll Need

Document Sole Trader Limited Company
Photo ID Yes Yes
Proof of address Yes Yes
Company registration number No Yes
Articles of association No Sometimes
Shareholder details No Yes

Application Process

  1. Choose your bank — Compare fees and features
  2. Gather documents — ID, address proof, company details
  3. Apply online — Most banks have digital applications
  4. Verify identity — Photo/video verification or branch visit
  5. Wait for approval — Minutes (digital) to weeks (traditional)
  6. Receive card and details — Start banking

Switching Business Bank Accounts

Unlike personal accounts, business accounts don’t have a formal switching service. You’ll need to:

  1. Open the new account
  2. Update payment details with clients
  3. Move standing orders and Direct Debits manually
  4. Transfer your balance
  5. Close the old account

Allow 4-6 weeks for a smooth transition.

Summary

For most small businesses and freelancers, Starling or Mettle offer the best value — completely free with good features. Growing businesses may benefit from Tide Plus or Revolut for team features and higher transaction limits. If you need branch access or cash deposits, consider HSBC Kinetic or Lloyds during their fee-free introductory periods.